### What is the primary role of a brokerage in a real estate transaction? - [ ] To buy and sell properties directly - [ ] To finance the transaction - [x] To facilitate the transaction between buyer and seller - [ ] To provide home insurance > **Explanation:** A brokerage facilitates a real estate transaction by working with the buyer and seller to help determine the price of a property, ensure all legal documents are completed, necessary signatures are obtained, and appropriate monies are collected. They do not buy or sell properties directly nor finance the transaction. ### How does a brokerage benefit buyers and sellers? - [ ] By providing home warranties - [ ] By directly buying homes from sellers - [ ] By eliminating the need for home inspections - [x] By saving time and valuable resources > **Explanation:** A brokerage saves buyers and sellers time and valuable resources. It helps buyers by showing them homes that fit their needs rather than numerous unsuitable properties. It helps sellers by marketing their home and managing the transaction process, avoiding the need for sellers to find buyers themselves. ### When are commissions paid to the brokerage firm? - [ ] When the buyer signs the purchase agreement - [ ] When the lender approves the mortgage - [x] When the transaction between the buyer and seller is concluded - [ ] When the property is listed > **Explanation:** Commissions are paid to the brokerage firm upon completion of the transaction between the buyer and seller, typically at closing when the ownership of the property is formally transferred and all funds are disbursed. ### What types of transactions do real estate brokerages primarily handle? - [ ] Stock market transactions - [ ] Car sales - [x] Real estate transactions - [ ] Insurance policies > **Explanation:** Real estate brokerages primarily handle transactions involving the buying and selling of real property. They facilitate the process by working with both buyers and sellers to ensure the transaction is conducted legally and efficiently. ### Which activity is NOT typically performed by a real estate brokerage? - [ ] Facilitating the determination of a property price - [ ] Ensuring all legal documents are completed - [ ] Collecting the appropriate monies - [x] Providing home financing > **Explanation:** While real estate brokerages facilitate property price determination, ensure completion of legal documents, and collect necessary funds, they do not typically provide direct home financing. That role is usually filled by mortgage lenders or banks. ### What key service can a brokerage firm provide to a buyer? - [x] Narrowing down the list of homes to view - [ ] Providing mortgage insurance - [ ] Performing home inspections - [ ] Conducting home repairs > **Explanation:** A brokerage helps buyers by narrowing down the list of homes to view, ensuring only those properties that meet the buyer’s needs and preferences are considered. This saves considerable time and effort for the buyer. ### What is a common way that brokerage firms ensure the transaction is completed? - [x] By obtaining necessary signatures and completing legal documents - [ ] By offering lower interest rates than banks - [ ] By reducing the price of the property - [ ] By insuring the property > **Explanation:** A brokerage firm coordinates with both parties to obtain necessary signatures and ensure all legal documents are completed accurately, contributing significantly to the smooth completion of the transaction. ### Why might sellers prefer using a brokerage firm instead of selling their homes on their own? - [ ] To save on brokerage fees - [x] To avoid the time-consuming task of finding buyers - [ ] To avoid property inspections - [ ] To get a higher mortgage rate > **Explanation:** Sellers might prefer using a brokerage firm to avoid the time-consuming and often complex task of finding buyers, marketing the property, and negotiating the sale. The expertise of brokerage firms streamlines the process and often leads to more successful outcomes. ### Who typically determines the price of a piece of real property in a transaction facilitated by a real estate brokerage? - [ ] Only the buyer - [ ] Only the seller - [x] The buyer and the seller, facilitated by the brokerage - [ ] The lending institution > **Explanation:** The price of a piece of real property is typically determined through a negotiation process between the buyer and the seller, facilitated by the brokerage. The brokerage's role is to assist both parties in determining a fair price. ### Which of the following best describes a task of a real estate brokerage? - [ ] Issuing building permits - [ ] Offering legal advice on property disputes - [x] Completing and processing transaction paperwork - [ ] Providing long-term maintenance services > **Explanation:** One of the key tasks of a real estate brokerage is to ensure all transaction paperwork is completed and processed correctly, including obtaining the necessary signatures and handling administrative tasks related to the sale.